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dj0hns0n
New Member

Hardship TSP withdrawal penalty

I am contemplating withdrawing from my TSP due to financial hardship. I'm aware of the initial taxes withheld but not sure of federal and state impacts for the state of Virginia. 

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1 Reply
TomD8
Level 15

Hardship TSP withdrawal penalty

The TSP website explains the tax consequences of a hardship withdrawal:

https://www.tsp.gov/in-service-withdrawal-basics/financial-hardship/#:~:text=Having%20the%20option%2....

 

An income source that is taxable at the federal level will also be taxable by the State of Virginia.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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